VANCOUVER, March 29, 2018 /PRNewswire/ - Friday Night Inc. (the Company or Friday Night) (CSE: TGIF) (FWB: 1QF) (OTCQB: TGIFF) is pleased to announce financial results for the second quarter ending January 31, 2018.
The Company announced a strong quarterly report with sales increases from both subsidiaries in Las Vegas, Nevada. Alternative Medicine Association ("AMA") has increased its focus on producing higher quality plants that command a higher price in the marketplace. Infused Mfg. has increased its product offering and both its top line sales and profits significantly contributed to the Company's bottom line. Canna Hemp products have been successfully received in Nevada and are now selling in retail locations in California and additional sales representatives have been added to expand the distribution network. With the recent acquisition of Spire Secure Logistics, management feels it has acquired a business with significant cash flow potential that will benefit from the growing cannabis sector.
Q2 Financial Highlights (Amounts in CND dollars)
- Total sales increase from $2,464,487 in Q1 to $2,962,699 in Q2, which represents a 20.2% increase
- US operations 6-month total sales of $5.4 million
- Gross profit in Q2 of $1,579,127
- Cash at end of period of $15,753,139
- Infused MFG increased sales by 45%
- AMA increased sales by 11%
Selected Quarterly Information
The following table shows results for the quarter ended January 31, 2018 in Canadian dollars.
3 months ended January 31, 2018
Cash at end of period
Developments in Q2
- On November 3, 2017, the Company announced an agreement with MariMed Advisors for an exclusive licensing deal to produce MariMed THC products including their unique sublingual "Melts" product line, a THC and CBD "Mints" line, "Kalm Corn" products and the "Betty Eddies" and "Berry Bombs" line of products. Under the terms of the agreement, AMA is, on an exclusive basis, producing these and other MariMed products using their proprietary processes and distributing these products to all dispensaries in Nevada.
- On November 10, 2017, Friday Night announced that AMA had executed an agreement to provide cultivation services to another Nevada licensed facility owned by Harvest Foundation.
- On December 6, 2017, the Company announced that AMA had signed a production contract to produce high-grade concentrates for a major dispensary chain in Nevada.
The following transactions were entered subsequent to January 31, 2018:
- The Company acquired as a wholly owned subsidiary, Spire Secure Logistics Inc., a Canadian private company specializing in security, intelligence, and compliance with international clients and expertise in both the regulated cannabis industry and other sectors.
- The Company closed on the purchase of an additional 2.78 acres of land contiguous to its current location that will host its new cultivation facility. It now owns over 4.17 acres following the transaction on a major thoroughfare in Las Vegas. The Company plans to build a new state-of-the-art 67,000 sq. ft. cultivation facility on this land that will help further scale both revenue and product lines.
- Friday Night announced on February 21st that it had terminated its letter of intent dated December 20, 2017 to acquire Body & Mind Inc. in an all-stock transaction.
Management focused and executed on several milestones surrounding its Nevada business expansion plans.
Detailed information on the financials and the management's discussion and analysis can be found at http://sedar.com/.
About Friday Night Inc.
Friday Night Inc. is a Canadian public company, which owns and controls cannabis and hemp-based assets in Las Vegas Nevada as well as an international cannabis and mining security logistics consulting firm. The Company owns 91% of Alternative Medicine Association, LC (AMA), a licensed medical and adult-use cannabis cultivation and production facility that produces its own line of unique cannabis-based products and manufactures other third-party brands. Infused MFG, also a 91% owned subsidiary, produces hemp-based, CBD products, thoughtfully crafted of high quality organic botanical ingredients. The Company's wholly-owned subsidiary, Spire Secure Logistics is a leading provider of customized security programs, compliance, information technology, buildout design, and due diligence services for the legal cannabis, mining and investment sectors. Friday Night Inc. is focused on strengthening and expanding its current operations.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. Friday Night undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Friday Night Inc.
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